Danske Bank consolidates the
ratings of its covered bonds with
S&P and Fitch

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30 August 2012

Announcement No. 13/2012

Danske Bank consolidates the ratings of its covered bonds with S&P and FitchDanske Bank has decided to consolidate the ratings of its covered bonds (EUR 25,000,000,000 Global Covered Bond Programme) with two rating agencies. This means that in the future, the Bank’s covered bonds will be rated only by Standard & Poor’s Rating Services (“S&P”) and Fitch Ratings Ltd (“Fitch”).

Danske Bank has three cover pools (Cover Pool D, Cover Pool I and Cover Pool C) from which rated covered bonds are issued. All three cover pools are rated by S&P and Fitch. Cover Pool D and Cover Pool I were previously rated by Moody’s Investors Service Ltd. (“Moody’s”) as well.

“The market standard today is for covered bonds to have only one or two ratings,” says Steen Blaafalk, Treasurer, Senior Executive Vice President at Danske Bank. “Since it is resource-consuming to use three rating agencies, we have chosen to reduce the number to two and consolidate the rating of the Bank’s covered bonds with S&P and Fitch. We do not believe this will have any significance for pricing or for investors.”

The decision has no affect on Danske Bank’s further collaboration with Moody’s. Moody’s will continue to rate Danske Bank and its subsidiary, Sampo Bank, including covered bonds issued by Sampo Bank.